Key Democratic Senator Calls for Advancement of Cryptocurrency Legislation, SEC Chair Says Lack of Legislation Poses Risk of Policy Backsliding

According to market news, Paul Atkins, the chairman of the U.S. Securities and Exchange Commission (SEC), stated at a Senate Banking Committee hearing that while his agency has the authority to provide regulatory clarity for the crypto industry through rulemaking, such rules lack "future adaptability" and can easily be overturned by subsequent administrations. Therefore, "a solid foundation in law is needed to prevent future backtracking."

Atkins noted that the SEC currently has "quite broad powers" to advance rulemaking through the "Project Crypto" agenda, but he emphasized that "Congress needs to enact good legislation" to support these rules. Although progress on the Senate's bill to regulate the cryptocurrency market structure has been intermittent, one of the main Democratic negotiators, Senator Mark Warner, expressed at the hearing that he still hopes this work can make progress.